Italy's Consorzio SUN Sees 20% Growth In Private-Label Sales

Italy’s Gruppo SUN (Supermercati Uniti Nazionali) recorded a 20.6% growth in private-label sales during the first ten months of 2017, compared to an average national growth rate of 3.8%, a study has found.

The Business Intelligence unit of Gruppo SUN, using IRI data, revealed that private-label beverage sales saw the biggest increase during the period, with sales of Consilia-branded beverages increasing by 29.3%, compared to a national average of 1.4%.

Other strong categories were Fresh, which saw a 16.3% rise (national average: 7.5%), Fruit and Vegetables, which rose by 12.8% (national average: 7.6%); Personal Care, which was up by 23.2% (national average: -1.5%) and Home Care, which rose by 17.1% (national average: -2.2%).

The SUN consortium is a buying group active in northern and central Italy. It brings together five local retailers – Italbrix, Gruppo Gabrielli, Alfi (Gulliver), Cadoro and Gros Gruppo Romano Supermercati – which together comprise over 615 stores.

Quicker Than Average

Commenting on the results, the general director of the SUN consortium, Stefano Rango, said that the Consilia private-label brand continues to grow at a rate far superior to the national average.

He said that the range of own-brand references provided by the company will continue to expand, responding to the changing needs of customers. Rango also highlighted a positive response from the product placement of Consilia products within reality TV show Big Brother VIP.

The Consilia brand has been a major driving force behind the growth of the SUN consortium, with the total turnover of the range reaching €111.1 million in 2016. This was forecast to increase to €125.8 million in 2017 and €131.1 million in 2018.

The number of references offered by the consortium has increased. It was set to rise from 1,919 in 2016 to 2,150 in 2018, according to research from Gdoweek.

Market Share

At the same time, Gruppo SUN has also managed to increase its national market share from 3.3% in 2016 to 3.4% in 2017, and it is targeting a share of 3.6% by the end of 2018.

Gruppo SUN is planning to invest €55 million in new-store openings this year, as well as working on the restructuring of its distribution network. It expects to operate 610 stores by the end of 2018.